Sorry, not sure if it went through,smoke is coming out the vent chimney with a bad smell and the vent off the furnace is as hot as the water to the baseboards

Your question is very hard for me to understand but I am going to give you one answer that sometimes goes with what you said.

You said smoke was coming out of your water heater chimney, one explanation for this is that the heat coming out of your chimney contains moisture and as soon as it hits the cold air of out side it turns to vapor and is actually steam but does look like smoke except it is actually white and smoke would have some color to it.